Originally Posted by
Nightshade
Because the .gov having their hands in private business is always a big issue to the public...and rightfully so
Value bouncing back still does not solve the issue of a single entity having a nation by the balls. If a company is too big to fail, then maybe that company is too big period.
The money invested into it currently would be a minor loss compared to the devastation of it folding altogether. At least if other companies bought up their debt the value of the transactions would balance out. It would be a minor hit to see AIG go down with only 1mil in debt (example) as opposed to 100billion.
The governments buying bad debt, no other company would want to buy that off of another knowing that doing so will cause the other to declare bankruptcy.